The EUR/JPY confirmed a closing below the support of the negative outside day at 104,65 extending already the drop 103,40. We could see further weakness toward 103 if not even 102,50.
The indicators of the daily chart are well negative as well as those of the s/t ones supporting further weakness. Bullish divergences in the s/t charts support a negative tone.
Possible rebounds should find resistance at 104 before the 104,50 area.
The European market has a small gap down this morning; we will try again a long position in case of a direct extension of the drop toward 102,50 before the US will start their session!!
We stay on the sideline for now.
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